Hubspot Plunges 14.58% In 3 Days As Selloff Intensifies Below Key $450 Support

Hubspot experienced significant bearish pressure in the latest session, declining 6.43% to close at $420.79. This marks the third consecutive down day, resulting in a cumulative 14.58% loss over this period. The price action breached the key psychological $450 level established during the August consolidation, accompanied by elevated trading volume of approximately 1.99 million shares, suggesting conviction behind the sell-off.
Candlestick Theory
Recent sessions show distinct bearish momentum confirmed by three long red candles. The August 7th session formed a decisive bearish engulfing pattern with a high of $522.80 and close at $461.87, exceeding the prior day's range and signaling continuation of the downtrend. Critical support now emerges at the year-to-date low of $418.34 printed on August 11th, while resistance crystallizes at the $447.85 swing high from the same session. The absence of reversal patterns like hammers or dojis near current levels suggests downward momentum remains intact.
Moving Average Theory
The moving average configuration reflects entrenched bearishness. Current price ($420.79) trades decisively below all major moving averages, with the shorter 50-day SMA at approximately $576 accelerating beneath the 100-day SMA ($612) and 200-day SMA ($630). This alignment creates a bearish "stacked" configuration where shorter-term averages lead longer ones downward. The expanding distance from the 200-day SMA, now representing 33% downside deviation, indicates severely oversold intermediate-term conditions that may eventually trigger mean-reversion bids, though no reversal signals are yet evident.
MACD & KDJ Indicators
The MACD histogram demonstrates sustained negative momentum, with the signal line entrenched below zero since early July. While the MACD line itself shows minor convergence (less negative than prices suggest), this divergence has yet to be validated by bullish crossover. KDJ readings enter oversold territory with the K-line near 15, though continued price deterioration indicates "oversold can become more oversold" in strong trends. Confluence exists with KDJ's bearish configuration where the %K line remains below the %D line, mirroring MACD's negative signal.
Bollinger Bands
Bollinger Bands show pronounced expansion following August volatility, with the lower band now near $400. The price has consistently hugged the lower band since August 7th, reflecting intense selling pressure without meaningful bounces – a characteristic of strong downtrends. Band width increased 38% during August's selloff, indicating heightened volatility that typically precedes directional resolution. Any stabilization near current levels may see band contraction develop, potentially creating conditions for a tactical rebound.
Volume-Price Relationship
Volume patterns validate bearish momentum. Down days consistently show higher volume (August 7: 2.78M shares, August 11: 1.99M) versus up days (August 6: 1.47M, August 4: 1.04M). The volume surge during breakdowns underscores distribution, while anemic volume during minor rallies suggests lack of conviction. Notably, August 11th's breakdown occurred on the highest relative volume in two weeks, confirming new capitulation. Absent substantial buying volume, rallies remain vulnerable.
Relative Strength Index (RSI)
The 14-day RSI plunges to 24, deep in oversold territory. While typically signaling exhaustion, its recent behavior warrants caution – the indicator failed to exceed 55 during July rebound attempts, reflecting underlying weakness. This marks the third oversold reading since May, each preceding only temporary stabilization rather than sustained recovery. While extreme oversold conditions suggest downside may be limited near-term, warning flags remain until RSI sustains above 30 and forms bullish divergence.
Fibonacci Retracement
Applying Fibonacci to the dominant downtrend from May's high of $682.56 to August's $418.34 low reveals critical retracement levels. The 23.6% ($479), 38.2% ($519), and 50% ($550) levels align with recent resistance areas where pullbacks stalled during June-August. The 38.2% retracement notably converges with the July breakdown point ($525), creating a high-probability resistance zone. Conversely, bearish extension targets emerge at 161.8% ($297), though immediate support appears at psychological $400.
Confluence and Divergence Observations: Multiple indicators reinforce the primary downtrend, with moving average alignment, MACD negativity, and volume confirmation creating high-probability bearish confluence. However, two subtle divergences emerge – the RSI's oversold extremes not seen since 2024's $500 lows, and the MACD line's moderating slope versus price. While these don't constitute reversal signals, they suggest bearish momentum may be exhausting near current levels, potentially setting the stage for technical bounces toward $460 where the 23.6% Fibonacci aligns with August's initial breakdown point.